The price of Bitcoin (BTC) opened the weekend trapped in the $ 33,500 to $ 32,000 range, but at the time of this writing, the digital asset is struggling to stay above $ 32,000.
Some analysts have warned that the recent loss of price momentum may be a sign of ‘institutional depletion’, as selling pressure from Asia has increased since January 19.
Despite the current downward trend in Bitcoin, some institutional investors are maintaining their forecast that the price of BTC will reach $ 100,000 before the end of 2021. This suggests that institutions are driven by growing investor sentiment and new proposals for a Bitcoin ETF.
Although Bitcoin still faces resistance around the $ 33,000 level, network analyst Willy Woo sees a potentially positive development for BTC. Woo said that Bitcoin Spent Output Profit Ratio (SOPR), a metric that shows BTC’s profit ratio by dividing the price sold by the price paid, had a “touchdown”.
According to Woo, there was:
“Complete SOPR reboot in the chain. Currencies that move between investors per hour (24h MA) no longer generate profit, on average. To push the SOPR down, investors would have to be willing to sell at a loss ”.
Woo also suggested that investors are less likely to sell at a loss, an early sign that Bitcoin may be close to bottoming out.
Altcoins and DeFi tokens fire
DeFi tokens and altcoins continued to make their own way while Bitcoin sought support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) rose by about 5% to 7%.
The increase in the price of many DeFi-related tokens was largely the result of an increase in DEX activity. Dune Analytics data shows that monthly DEX volumes have increased since July 2020, and currently the total blocked amount on DeFi is $ 23.89 billion.
Chainlink (LINK) continued its strong recovery, setting a new historical record of $ 25.50 and surpassing Litecoin (LTC) in terms of total market capitalization to become the seventh largest project listed on CoinMarketCap. The price of Aave also reached a new historical record of US $ 229.39 and the total value blocked on the platform is US $ 3.44 billion.
The overall capitalization of the cryptocurrency market is now at $ 936.8 billion and Bitcoin’s dominance rate is 63.5%.